What is the transient occupancy tax commonly referred to as?

The transient occupancy tax is commonly referred to as the bed tax. This term stems from the nature of the tax, which is typically levied on guests who occupy lodging accommodations for a short period, such as hotels, motels, and vacation rentals. The term "bed" directly correlates to the types of accommodations taxed, as it pertains to the renting of a space for overnight stays.

The bed tax serves as a source of revenue for municipalities and is often used to fund public services or tourism-related initiatives. This makes it distinct from other types of taxes, like rental taxes or licensing taxes, which may apply to longer-term rentals or business operations rather than transient stays. Understanding this specific terminology is crucial for hospitality professionals, as it affects pricing strategies, guest communications, and overall financial management strategies within the lodging industry.